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Highlights
- Monero is privacy-oriented digital cash that offers an edge over Bitcoin and various other cryptos.
- Monero utilises three important technologies: Stealth Address, Ring Signatures and Ring CT to ensure untraceable transactions and user anonymity.
- Due to the privacy-enhancing features of Moenro, it has become cybercriminals’ favourite over recent months.
When it comes to cryptocurrencies, many users are intrigued by the aspect of anonymity attached to them. However, some mainstream cryptocurrencies such as Bitcoin do leave a transaction trail behind that can be easily followed.
Thus, traders seeking an even higher level of privacy have quickly turned to a more privacy-oriented digital cash - Monero – over recent months. The features of Monero offer it an edge over Bitcoin and various other cryptos as they allow transactions to be done in a completely anonymous form.
Did you miss out on these one year gains on Monero?
In addition to guarding the users’ identity, Monero has been built in a way that its transactions remain untraceable. Supporters of cryptocurrency argue that privacy and anonymity lie at the centre of the online community involving digital assets. Thus, Monero is considered the flagbearer of fungible currency that is always safe and secure.
Interestingly, Monero has risen by about 116 per cent over the last year, from around US$108 in September 2020 to over US$230 as of 29th September. This means that your US$100 a year ago would have become US$216 today in case you have invested in Monero!
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Privacy-enhancing features of Monero
Most Bitcoin transactions can be traced back to an original and realistic address, allowing full disclosure of the participants’ identities. Moreover, transactions done under a false address can be traced through the public transaction history, exposing transaction patterns and linked accounts to the user.
However, Monero goes a step beyond and offers a higher level of security through three essential technologies: Stealth Address, Ring Signatures and Ring CT. The Stealth Address feature generates a one-time address for each transaction. The Ring Signatures refers to a group of signatures out of which only one is original and is indiscoverable in a group of fictitious signatures. And the Ring CT allows money to be sent without the transaction amount being revealed.
Monero, being a fungible currency, offers its users the feature of being equal in all aspects. Thus, each unit of Monero is equal in value to the other and is, therefore, a perfect substitute. In a way, Monero’s exclusivity lies in its ability to create air-tight transactions and potentially escape through the highly regulated environment in the future.
It is worth noting that Monero has received a lot of attention from authorities lately, with the cryptocurrency becoming cybercriminals’ favourite. The recent gains in crypto can be attributed to the recent ransom attack on Colonial Pipeline, which supplies petroleum to the US East Coast. Ransomware attackers have publicly announced a shift to Monero from Bitcoin.
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Bottom Line
In a nutshell, Monero’s distinct privacy-enhancing features have brought this cryptocurrency into the spotlight. However, this achievement comes at the cost of heightened cybercriminal activity and growing acceptance of this cryptocurrency in questionable areas. Having said that, it would be interesting to see how this cryptocurrency tackles the ongoing wave of increased regulatory measures in its future journey.
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